AJ Bell reaches half a million customers as assets under management up

(Alliance News) - AJ Bell PLC on Thursday said customer numbers rose past half a million, as it reported "record" assets under management.

The Manchester, England-based retail investment platform operator reported an increase in customer numbers on its platform in its financial second quarter, which ended March 31. They grew by 19,000 during the quarter to 503,000.

The AJ Bell platform had "record" assets under administration of GBP80.3 billion, a rise of 17% on-year and 5% on-quarter.

"Gross and net inflows across the platform in the run-up to the tax-year-end were significantly higher than in the comparative quarter last year," AJ Bell added.

Gross inflows rose 36% annually to GBP3.4 billion. Net inflows were up a third to GBP1.6 billion.

Chief Executive Officer Michael Summersgill said: "We saw strong momentum in the run up to the tax year end as improving retail investor sentiment, together with continued investment in our brand and propositions, helped to deliver GBP1.4 billion of gross inflows in March alone, a new monthly record for the business."

He added: "Looking further ahead, the growth opportunity for the platform market remains significant and our ongoing brand investment will continue to drive increased awareness of AJ Bell,

supporting our long-term growth ambitions."

Assets under management at AJ Bell Investments were GBP5.8 billion as at March 31, up 49% from GBP3.9 billion a year prior and 12% higher than GBP5.2 billion on December 31.

"AJ Bell Investments continues to prove popular, particularly with financial advisers, which is driving strong flows via both AJ Bell Investcentre and third-party adviser platforms," CEO Summersgill said.

AJ Bell shares were 5.8% to 312.16 pence each on Thursday morning in London.

AJ Bell shares are up 4.6% year-to-date. Towards the back end of last year, shares in investment platforms suffered after the UK Financial Conduct Authority set out concerns on the treatment of retained interest on customer cash balances.

The FCA said it was concerned some practices may not be providing fair value to customers and "may not be understood by consumers or properly disclosed".

AJ Bell will release its half-year results on May 23.

By Tom Budszus, Alliance News slot editor

Comments and questions to [e-mail]

Copyright 2024 Alliance News Ltd. All Rights Reserved.